📉BearBull Shorting Protocol

This page details BearBull's shorting protocol, the first system to ever allow for shorting any low market cap cryptocurrency listed on popular DEX's.

The BearBull shorting protocol allows users of the BearBull Dex to take short positions on any DeFi coin or token, provided sufficient supply is available for lending. When a short is taken, the user taking the short must decide upon a percentage loss they are willing to incur on the trade (the liquidation price) and the maximum amount of time they wish to partake in the trade for. Short orders may not last for longer than 24h, and a 6% fee is charged on every short order transaction.

The tokens being used to short will automatically be liquidated when the short is taken, and the funds will be held within the BearBull smart contracts until the short is finished. Should the liquidation price be reached, the tokens will immediately be repurchased at the higher price point and returned to the lending pools. Should the tokens decrease in value, the user shorting may choose to cash in their profit at any moment between the time the short is taken and the maximum end time.

When the user chooses to cash in, the tokens used to short are automatically repurchased at the lower price point and returned to the lending pools, and the remaining capital is directed to the user having executed the short. Should the maximum end time be reached before the user chooses to end the trade, the short position will automatically be closed, the tokens will be repurchased and returned to the lending pools, and any remaining capital will be directed to the user having shorted